For the loans could anything be written in? Like prepayment penalty or lack there of?
Confused about the difference between a liquidity pool and just buying something and selling it - but maybe the next level defi article will answer. I see it now as advanced payment and advanced sale price so to speak but perhaps that’s just my limited understanding.
Would you recommend the same wallets for defi as you did in the earlier crypto post? Ledger can’t handle much more than ETH/BTC from what I see or what I have - I like the cold storage concept.
Is there any way to tell other than relying on someone like yourself to identify what DeFi will truly replace banks like auto payment and deductions etc?
Apologies if these are all rudimentary, just the questions that come to mind. Not looking for a comp sub.
Any rules that can be represented by math or code can be written into DeFi lending, there are no restrictions besides imagination for what can be done. Usually the interest on DeFi loans accumulates at set intervals (either by the block, hour, or day), and isn't calculated like a mortgage to return a fixed IRR, so a pre-payment penalty is unnecessary as the protocols profit is turned by whatever usage fee they charge (usually less than 0.4%).
Pretend a liquidity pool is a fenced area that has chickens and pigs in it. The farmer that owns the area lets people take an animal so long as they replace it with another animal. But the farmer doesn't want to run out of one type of animal, so he makes it more and more expensive to take the animal he has less of, and he also makes it cheaper and cheaper to return the animal he has more of. So when there are 50 pigs and 50 chickens, you can swap 1 for 1. If there are 20 pigs and 80 chicken, you might have to bring 5 chickens if you want to take a pig out, while if you bring a pig, he'll let you take 4 chickens. His price for each animal is dependent on his supply of that animal and the only two animals you can trade inside his fence are the pig or the chicken. A liquidity pool functions the same way except instead of pigs and chickens its crypto asset (A) and crypto asset (B).
Ledger is slow to be integrated with DeFi so you will typically miss the first few weeks of a platform launch and can sometimes be a pain to sign very often with DeFi. Ledger is where I would keep assets that I don't intend to use with DeFi and just top up my DeFi wallets, or make withdrawals from my DeFi wallets to the ledger device wallets.
Wallets differ from chain to chain. You really have to ask chain specific questions or seek that information out if its a chain I don't regularly interact with. Many of the EVM compatible L1s use metamask, so you can use the same wallet you use for ETH, but then some others have their own wallet, like ATOM has the cosmostation wallet, VET has the VeChainThor wallet, STX has the hirowallet. Thats a chain specific question.
No way to identify which DeFi protocols will replace banks, and I would even say that you can't rely on me to do that as I will most likely be wrong in whatever I would guess at this point.
Once you get a 2x, 3x, or 4x. Take your initial investment out and keep the moonbag in case the asset really runs. That way if it goes to zero, you get out at the very worst at a break even, and if it moons you have a risk free position. You don't want to be over-invested in anything because we are still really early. A lot of the necessary infrastructure for this to work long term as a better functioning version of fiat than government fiat is still being laid today.
Makes sense. If you’re keeping expenses etc no need to even worry about the autosyndnt, direct deposit and deductions aspect yet I guess, just sucks to see the checking account devalue so part of me wants to truly get rid of it. Definitely not just counting on your insights but leaning on someone following all this, to the other persons point, it’s hard to keep track of it all.
The farm animal comparison makes complete sense, thank you.
Is there a way to decentralize alimony payments so that someone else pays for them. Like this other person thinks they're investing but really they are paying for my whore ex-wife to vacation in Costa Rica??
What if there was like an insurance network that you signed up to whenever you got married (secretly). And when you did you made an estimate about how large your alimony payments would be, and they would mint a set amount of tokens which you would buy at a set price so that the market cap of the project would be equivalent to the alimony you would owe. But if the ex-wife of any user were to meet some unfortunate end, the remaining alimony money would roll back into the DAO treasury for the insurance network. And then tokens could be bought up on the open market by speculators expecting unfortunate deaths to lead to an appreciating DAO treasury. Or perhaps the lucky ex husband could sell the remaining on the open market.
So long as there are always new married couples joining the price of the token should appreciate so that the men that bought in the previous year could turn a tidy profit on the token.
Pyramid scheme? No, no... I don't see any potential point of failure.
Damn dude the future is going to be wild. No doubt shit this weird is going to pop up.
In all seriousness though I am very hesitant to jump into this DeFi stuff, mostly out of my own ignorance but also out of the inherent uncertainty. I mean who knows what protocols are around in 5 years?
It's why I'm personally so heavy in BTC.
I'm interested in this alt stuff and decentralized everything stuff but I also have a day job lol, it's hard to keep up :((
Nothing wrong with that. For the time being, BTC is the store of value in blockchain. My only goal here is to show people whats possible so that they can know and make their own decision. A lot of the protocols are all impermanent in some sense or another, which is why I always tell people to sell reward tokens for the base token, and if you go through a 2x or 3x of the base token to sell back into BTC or ETH so that your remaining position is risk free.
People don't want to believe it, but the most basic and obvious trade is the one to stay in. BTC and ETH long term accumulation.
But I also understand people want to ride a moon rocket, so trying to help people identify as many good Alts as possible without falling for the siren song of the dumpster fire Alt-coins that aren't going anywhere.
An article on using NFTs to conveniently fix some of the (albeit orchestrated imo) supply chain issues that seem relevant to the topic https://www.sdcexec.com/software-technology/ai-ar/article/21915598/spice-vc-nonfungible-tokens-for-the-supply-chain
For the loans could anything be written in? Like prepayment penalty or lack there of?
Confused about the difference between a liquidity pool and just buying something and selling it - but maybe the next level defi article will answer. I see it now as advanced payment and advanced sale price so to speak but perhaps that’s just my limited understanding.
Would you recommend the same wallets for defi as you did in the earlier crypto post? Ledger can’t handle much more than ETH/BTC from what I see or what I have - I like the cold storage concept.
Is there any way to tell other than relying on someone like yourself to identify what DeFi will truly replace banks like auto payment and deductions etc?
Apologies if these are all rudimentary, just the questions that come to mind. Not looking for a comp sub.
Any rules that can be represented by math or code can be written into DeFi lending, there are no restrictions besides imagination for what can be done. Usually the interest on DeFi loans accumulates at set intervals (either by the block, hour, or day), and isn't calculated like a mortgage to return a fixed IRR, so a pre-payment penalty is unnecessary as the protocols profit is turned by whatever usage fee they charge (usually less than 0.4%).
Pretend a liquidity pool is a fenced area that has chickens and pigs in it. The farmer that owns the area lets people take an animal so long as they replace it with another animal. But the farmer doesn't want to run out of one type of animal, so he makes it more and more expensive to take the animal he has less of, and he also makes it cheaper and cheaper to return the animal he has more of. So when there are 50 pigs and 50 chickens, you can swap 1 for 1. If there are 20 pigs and 80 chicken, you might have to bring 5 chickens if you want to take a pig out, while if you bring a pig, he'll let you take 4 chickens. His price for each animal is dependent on his supply of that animal and the only two animals you can trade inside his fence are the pig or the chicken. A liquidity pool functions the same way except instead of pigs and chickens its crypto asset (A) and crypto asset (B).
Ledger is slow to be integrated with DeFi so you will typically miss the first few weeks of a platform launch and can sometimes be a pain to sign very often with DeFi. Ledger is where I would keep assets that I don't intend to use with DeFi and just top up my DeFi wallets, or make withdrawals from my DeFi wallets to the ledger device wallets.
Wallets differ from chain to chain. You really have to ask chain specific questions or seek that information out if its a chain I don't regularly interact with. Many of the EVM compatible L1s use metamask, so you can use the same wallet you use for ETH, but then some others have their own wallet, like ATOM has the cosmostation wallet, VET has the VeChainThor wallet, STX has the hirowallet. Thats a chain specific question.
No way to identify which DeFi protocols will replace banks, and I would even say that you can't rely on me to do that as I will most likely be wrong in whatever I would guess at this point.
It's best to utilize the strategy I outlined in last weeks forecast post (https://flirtcheap.substack.com/p/forecast-11022-bet-on-positivity)
Once you get a 2x, 3x, or 4x. Take your initial investment out and keep the moonbag in case the asset really runs. That way if it goes to zero, you get out at the very worst at a break even, and if it moons you have a risk free position. You don't want to be over-invested in anything because we are still really early. A lot of the necessary infrastructure for this to work long term as a better functioning version of fiat than government fiat is still being laid today.
So the home loans are almost like staking? That’s cool. If you could lease or short term rental that would be even better.
Makes sense. If you’re keeping expenses etc no need to even worry about the autosyndnt, direct deposit and deductions aspect yet I guess, just sucks to see the checking account devalue so part of me wants to truly get rid of it. Definitely not just counting on your insights but leaning on someone following all this, to the other persons point, it’s hard to keep track of it all.
The farm animal comparison makes complete sense, thank you.
Is there a way to decentralize alimony payments so that someone else pays for them. Like this other person thinks they're investing but really they are paying for my whore ex-wife to vacation in Costa Rica??
:D
What if there was like an insurance network that you signed up to whenever you got married (secretly). And when you did you made an estimate about how large your alimony payments would be, and they would mint a set amount of tokens which you would buy at a set price so that the market cap of the project would be equivalent to the alimony you would owe. But if the ex-wife of any user were to meet some unfortunate end, the remaining alimony money would roll back into the DAO treasury for the insurance network. And then tokens could be bought up on the open market by speculators expecting unfortunate deaths to lead to an appreciating DAO treasury. Or perhaps the lucky ex husband could sell the remaining on the open market.
So long as there are always new married couples joining the price of the token should appreciate so that the men that bought in the previous year could turn a tidy profit on the token.
Pyramid scheme? No, no... I don't see any potential point of failure.
Damn dude the future is going to be wild. No doubt shit this weird is going to pop up.
In all seriousness though I am very hesitant to jump into this DeFi stuff, mostly out of my own ignorance but also out of the inherent uncertainty. I mean who knows what protocols are around in 5 years?
It's why I'm personally so heavy in BTC.
I'm interested in this alt stuff and decentralized everything stuff but I also have a day job lol, it's hard to keep up :((
Nothing wrong with that. For the time being, BTC is the store of value in blockchain. My only goal here is to show people whats possible so that they can know and make their own decision. A lot of the protocols are all impermanent in some sense or another, which is why I always tell people to sell reward tokens for the base token, and if you go through a 2x or 3x of the base token to sell back into BTC or ETH so that your remaining position is risk free.
People don't want to believe it, but the most basic and obvious trade is the one to stay in. BTC and ETH long term accumulation.
But I also understand people want to ride a moon rocket, so trying to help people identify as many good Alts as possible without falling for the siren song of the dumpster fire Alt-coins that aren't going anywhere.
When you say "lower cost blockchain" other than ETH in your conclusion, which ones do you mean?
The ones listed in section 4